The Government of Canada has launched a public consultation to examine ways to improve Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime. Comments or feedback in response to the consultation paper are due by August 1, 2023. The consultation paper can be found at this link >>
The consultation asks some specific questions impacting the real estate and finance sector. In particular, it asks whether the following additional sectors should be included in the FINTRAC reporting regime:
- for-sale-by-owner companies
- real estate auction companies
- building supply and renovation companies
- title insurers
- mortgage insurers
- white label automated teller machine owners/operators, and
- factoring companies, which supply short-term loans or upfront payment for the accounts receivable of another business to address their cash-flow needs
The consultation also asks whether real estate representatives under the PCMLTFA should be obligated to identify unrepresented parties and conduct third-party determinations in real estate transactions involving unrepresented parties.
Of concern to all reporting entities, is a question as to whether administrative penalties should be levied against directors, officers, and agents within an entity in certain cases of violations of the PCMLTFA?
Please let us know at CAPL if you have any questions about the consultation or wish to share a perspective or provide comments – email us at s.gale@privatelenderassociation.ca
Anti-money laundering requirements for mortgage lenders
CAPL has met with consultants working for FINTRAC to assist with the roll out of AML requirements for the mortgage services sector, which includes mortgage lenders. In order to understand private mortgage lenders better, the consultants have asked that this survey be completed
TAKE THE SURVEY
Please know that we have explained that private mortgage lenders are not regulated by OSFI and do not underwrite loans as OSFI regulated entities do. In addition, we have also explained that mortgage borrowers are not the clients of mortgage lenders, and that some mortgage lenders/investors are clients who should not be required to comply with AML rules.
Here is CAPL’s letter on this subject
